Saratoga Research & Investment Management Has $77.01 Million Stake in NVIDIA Corporation $NVDA

Key Points

• Saratoga Research & Investment Management increased its NVIDIA stake by 14.3% in the second quarter, owning 384,865 shares worth approximately $77.01 million. Institutional investors collectively own 65.27% of NVIDIA.
• NVIDIA reported quarterly revenue of $96.22 billion, up 105.9% year over year, and EPS of $2.22, exceeding analyst expectations. The company also authorized an $80 billion share-buyback program.
• Wall Street remains bullish, with a consensus “Buy” rating and an average price target of $324.34, although insider selling, higher memory costs and concerns about a potential slowdown in AI spending pose risks.

Saratoga Research & Investment Management lifted its position in shares of NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 14.3% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 384,865 shares of the computer hardware maker's stock after purchasing an additional 48,141 shares during the quarter. NVIDIA makes up about 4.2% of Saratoga Research & Investment Management's investment portfolio, making the stock its 9th largest position. Saratoga Research & Investment Management's holdings in NVIDIA were worth $77,008,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also modified their holdings of NVDA. BWM Planning LLC grew its stake in shares of NVIDIA by 43.8% during the second quarter. BWM Planning LLC now owns 4,699 shares of the computer hardware maker's stock valued at $940,000 after purchasing an additional 1,432 shares during the last quarter. Financial Consulate Inc. lifted its stake in shares of NVIDIA by 5.5% during the second quarter. Financial Consulate Inc. now owns 28,859 shares of the computer hardware maker's stock valued at $5,774,000 after acquiring an additional 1,511 shares during the period. Eaton Cambridge Inc. boosted its holdings in NVIDIA by 3.8% in the second quarter. Eaton Cambridge Inc. now owns 22,870 shares of the computer hardware maker's stock valued at $4,576,000 after acquiring an additional 842 shares during the last quarter. Hoertkorn Richard Charles increased its position in NVIDIA by 48.3% in the second quarter. Hoertkorn Richard Charles now owns 11,056 shares of the computer hardware maker's stock worth $2,212,000 after purchasing an additional 3,600 shares during the period. Finally, Forum Financial Management LP increased its position in NVIDIA by 25.9% in the second quarter. Forum Financial Management LP now owns 69,037 shares of the computer hardware maker's stock worth $13,814,000 after purchasing an additional 14,205 shares during the period. Institutional investors own 65.27% of the company's stock.

NVIDIA Trading Down 3.4%

NVDA opened at $210.96 on Tuesday. The stock has a market capitalization of $5.08 trillion, a P/E ratio of 26.67, a P/E/G ratio of 1.71 and a beta of 2.22. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $236.54. The firm's fifty day simple moving average is $213.60 and its 200 day simple moving average is $203.54.

NVIDIA (NASDAQ:NVDA - Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter last year, the business posted $1.05 EPS. The company's revenue for the quarter was up 105.9% on a year-over-year basis. As a group, research analysts anticipate that NVIDIA Corporation will post 9.12 EPS for the current fiscal year.

NVIDIA announced that its board has initiated a stock buyback program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's management believes its stock is undervalued.

NVIDIA Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA's dividend payout ratio (DPR) is 12.64%.

NVIDIA News Summary

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: CEO Jensen Huang publicly rejected the idea of an AI slowdown and told President Donald Trump that NVIDIA would not allow one to happen. Trump also criticized opposition to new data centers, signaling continued political support for AI infrastructure investment. NVIDIA CEO Jensen Huang tells Trump about AI slowdown
• Positive Sentiment: NVIDIA’s underlying demand story remains strong: recent earnings showed revenue growth of more than 100%, while management has indicated that supply—not customer demand—is limiting expansion. Analysts continue to view NVIDIA favorably relative to other AI infrastructure companies because of its faster growth, strong margins and lower leverage. NVIDIA versus Marvell AI infrastructure comparison
• Positive Sentiment: The company expanded its open-source CUDA-Q platform with CUDA-Q Logical, which connects GPUs with quantum processors and could generate longer-term demand for NVIDIA accelerated-computing and networking systems. Fermilab reportedly reduced a fault-tolerant design cycle from five months to three weeks using the platform. NVIDIA expands CUDA-Q for quantum computing
• Neutral Sentiment: NVIDIA is reportedly considering a large investment in Anthropic and continues to pursue strategic investments across AI infrastructure. Such moves could strengthen ecosystem demand, but the Anthropic investment has not been presented as a finalized transaction. NVIDIA investment discussions involving Anthropic
• Negative Sentiment: Anthropic, OpenAI and other AI executives have called for a more measured pace of frontier-model development. Investors interpreted those comments as a potential threat to hyperscaler capital spending, GPU demand and the pace of data-center expansion, pressuring NVDA and peer chip stocks. NVIDIA stock and AI slowdown concerns
• Negative Sentiment: Management expects higher memory costs to weigh on gross margins, while NVIDIA’s reliance on a relatively small number of major customers creates concentration risk. These concerns make the stock vulnerable to profit-taking when AI spending expectations soften.

Insider Activity

In related news, Director Mark A. Stevens sold 622,239 shares of the company's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Timothy S. Teter sold 30,000 shares of the stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $217.88, for a total value of $6,536,400.00. Following the transaction, the executive vice president directly owned 2,687,660 shares of the company's stock, valued at $585,587,360.80. This trade represents a 1.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 2,585,740 shares of company stock worth $571,015,527 over the last three months. Insiders own 3.94% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on NVDA. KGI Securities increased their price objective on shares of NVIDIA from $335.00 to $345.00 in a report on Thursday, August 27th. Phillip Securities raised their price target on NVIDIA from $285.00 to $300.00 and gave the stock a "buy" rating in a research report on Monday, August 31st. BMO Capital Markets set a $340.00 price objective on NVIDIA and gave the company an "outperform" rating in a report on Thursday, August 20th. Piper Sandler initiated coverage on NVIDIA in a research report on Wednesday, September 9th. They set an "overweight" rating and a $300.00 target price for the company. Finally, Robert W. Baird set a $500.00 target price on shares of NVIDIA and gave the stock an "outperform" rating in a report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, NVIDIA currently has a consensus rating of "Buy" and an average price target of $324.34.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company's offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

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